(2 points) The chartered financial analyst (CFA) is a designation earned after t
ID: 3306640 • Letter: #
Question
(2 points) The chartered financial analyst (CFA) is a designation earned after taking three annual exams (CFA I,lI, and II). The exams are taken in early June. Candidates who pass an exam are eligible to take the exam for the next level in the following year. The pass rates for levels I, II, and IlI are 0.52, 0.8, and 0.8, respectively. Suppose that 3,000 candidates take the level l exam, 2,500 take the level II exam and 2,000 take the level IlI exam. Suppose that one of the 7,500 candidates is selected at random. What is the probability that he or she passes the exam? ProbabilityExplanation / Answer
(Ignore the extra a in exaam)
Number of candidates for level I exaam = 3000
Probability of a student passing level I exaam = 0.52
=> Expected number of students passing level I exaam = 3000*0.52 = 1560
Number of candidates for level II exaam = 2500
Probability of a student passing level II exaam = 0.8
=> Expected number of students passing level II exaam = 2500*0.8 = 2000
Number of candidates for level III exaam = 2000
Probability of a student passing level III exaam = 0.8
=> Expected number of students passing level III exaam = 2000*0.8 = 1600
Total expected number of students passing the exaam = 1560 + 2000 + 1600 = 5160
The probability of a person passing the exaam = 5160/7500 = 0.688
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